[GNC] Transferring mutual funds

[AC]

Yes it is a total transfer as if I had a basket of widgets in my 
kitchen, picked it up and placed it in my neighbor's kitchen. The 
widgets didn't change, only the storage location.

I'm able to log into the new broker's website and see the entire history 
of each fund since I first purchased shares even though I've only been 
with the broker for a week. There just doesn't seem to be a good method 
for handling something like this or at least not one that is obvious.

Even if there's some kind of hackery/kludgery needed it would be useful 
to know how that works and maybe could be addressed as part of a future 
feature request. As I mentioned before it's academic because I don't use 
Gnucash's reports to perform any critical tasks like tax computations 
but if someone has done it in a way that worked I'd really like to know.

On 2023-07-06 19:09, R Losey wrote:
> If it's truly some kind of rollover, Gnucash does allow an exchange of
> shares without a price. But I don't know how you'd keep the cost basis in
> the new account.
> 
> 
> On Wed, Jul 5, 2023 at 5:49 PM David Carlson <david.carlson.417 at gmail.com>
> wrote:
> 
>> AC,
>>
>> Yes, to keep GnuCash happy you want to transfer the cost basis as well as
>> the securities to the new brokerage account.  By entering the transactions
>> as a sale at the same price that you purchased the the security and a new
>> purchase at that same price, you are transferring the cost basis, Since
>> that is not a real sale, there is no realized gain or loss to report to the
>> taxman until you really do sell
>>
>> If you didn't transfer the cost, then GnuCash would think that the old
>> account still had a cost for a now non-existent asset and the new account
>> got the security free.  You may have to provide that same information to
>> your broker or custodian if they didn't get it automatically.
>>
>>
>>
>> On Wed, Jul 5, 2023 at 3:31 PM AC <gnucash at acarver.net> wrote:
>>
>>> Answering two at once:
>>>
>>> Fred: No I did not work in split view. I was just working at the single
>>> account level.
>>>
>>> David: Are you saying I need to instruct GnuCash to treat the transfer
>>> as a sale even though there was no sale thus no realized gains/losses
>>> and no actual change in the cost basis?
>>>
>>> On 2023-07-05 10:07, David Carlson wrote:
>>>> AC,
>>>>
>>>> Fred implied, but didn't elaborate on the point that the shares in the
>>>> original brokerage account had a cost basis that was incurred when they
>>>> were purchased.  When you transfer them out, that is equivalent to a
>> sale
>>>> or closing transaction, and the cost basis should be adjusted
>>> accordingly,
>>>> even though there were no funds involved.  Of course, that exact cost
>>> basis
>>>> needs to be added to the receiving account as if the shares were
>>> purchased
>>>> at the original price.  This used to be described in great detail in
>> one
>>> of
>>>> the help manuals, including the somewhat tricky procedure to enter
>>> realized
>>>> gains when an actual sale happens but I haven't checked lately to see
>> if
>>>> those parts are still there.  I know that if you do not do those things
>>> and
>>>> later run a trial balance or if you use the Investment Portfolio
>> report,
>>>> you will quickly see the error of your ways.
>>>>
>>>>
>>>>
>>>> On Wed, Jul 5, 2023 at 11:33 AM Fred Bone <Fred at mandfb.me.uk> wrote:
>>>>
>>>>> On 04 July 2023 at 16:29, AC said:
>>>>>
>>>>>> I recently moved some mutual funds from one brokerage to another. The
>>>>>> process did not involve a sale, it was just a transfer of control
>> from
>>>>> the
>>>>>> old to the new.
>>>>>>
>>>>>> In my current books I keep mutual funds listed as subaccount under
>> each
>>>>>> brokerage as such with their respective security/currency:
>>>>>>
>>>>>> Investments
>>>>>> -Brokerage 1 (currency)
>>>>>> --Fund A (security A)
>>>>>> --Fund B (security B)
>>>>>> -Brokerage 2 (currency)
>>>>>> --Fund A (security A)
>>>>>> --Fund C (security C)
>>>>>> --Fund D (security D)
>>>>>>
>>>>>> I wanted to expand this to add the new brokerage and then perform a
>>>>>> transfer of the funds from one to the other. Let's assume I moved the
>>>>>> funds under Brokerage 1 to Brokerage 3. So the tree would look like
>> the
>>>>>> simplified version below (leaving out Brokerage 2 as it is
>> unaffected):
>>>>>>
>>>>>> Investments
>>>>>> -Brokerage 1 (currency)
>>>>>> --Fund A (security A)
>>>>>> --Fund B (security B)
>>>>>> -Brokerage 3 (currency)
>>>>>> --Fund A (security A)
>>>>>> --Fund B (security B)
>>>>>>
>>>>>> The securities are the same because it's the same original mutual
>>> funds,
>>>>>> just moved to another brokerage. The tree would be left intact with
>> the
>>>>>> funds under Brokerage 1 being zeroed out and the funds under
>> Brokerage
>>> 3
>>>>>> starting off with the incoming values.
>>>>>>
>>>>>> My natural tendency was to create a transfer directly within
>> Brokerage
>>> 1
>>>>>> Fund A that moved all the shares over to Brokerage 3 Fund A but that
>>>>>> didn't create the transaction I expected.
>>>>>>
>>>>>> By example, I transferred Fund A on July 1 which contained 10 shares
>> at
>>>>>> the price of the shares on that day. So in Brokerage 1 I entered -10
>>>>>> shares with a total sell price of X as listed on the statement from
>>>>>> Brokerage 1. The price is autocalculated and the balance correctly
>> goes
>>>>> to
>>>>>> zero.
>>>>>>
>>>>>> Looking inside the Brokerage 3 Fund A account I only see a
>> transaction
>>>>>> that has an amount in the buy column but no shares and a balance of
>>> zero.
>>>>>> I can manually enter the same number of shares in that partially
>> empty
>>>>>> transaction but why was my thought about the transfer incorrect?
>> Should
>>>>> it
>>>>>> have not transferred those shares over as well?
>>>>>
>>>>> Did you work in split view?
>>>>>
>>>>> I can replicate what I think you are saying if I don't enter the
>>> separate
>>>>> splits.
>>>>>
>>>>> If I go about it the obvious way (in split view) and enter balancing
>>>>> amounts then it all works.
>>>>>
>>>>> However, I'm still on 2.6.21 ...
>>>>>
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>>>>
>>>>
>>>
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>>
>>
>> --
>> David Carlson
>> _______________________________________________
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> 
>